EV to give impetus to India’s auto industry, size may reach 134 lakh crore by 2047

New Delhi| According to industry experts, India’s domestic automobile industry could grow from Rs 20 lakh crore in FY24 to reach $1.6 trillion (Rs 134 lakh crore) by 2047. The reason for the rapid growth of the auto industry is said to be the increase in the trend of electric vehicles (EVs). Pawan Goenka, chairman of In-Space at the Department of Space, said the automotive industry in the country is poised for faster growth and will contribute significantly to achieving the GDP target of 32 trillion by 2047.At the Automotive Component Manufacturers Association (ACMA) event held in New Delhi, Goenka said that the automotive industry’s contribution to the country’s economy could reach $1.6 trillion by 2047.

In the coming period, the share of the auto industry’s GDP will be higher than the current 6.8 percent, as the auto industry has been growing continuously at a CAGR of about 17 percent for the last two decades. The auto sector plays a big role in direct and indirect employment in the country.

Vinod Aggarwal, President, Society of Indian Automobile Manufacturers (SIAM), said that 50 such important components have been identified by India’s auto industry to be produced in India to reduce dependence on imports. Aggarwal further said that India’s automotive industry has surpassed the Rs 20 lakh crore mark in FY24 and 14 to 15 per cent of the country’s total GST is coming from the auto industry.India has become the third largest passenger and commercial vehicle market in the world. At the same time, India is the world’s largest auto market in the two-wheeler and three-wheeler category.